Nokia has officially confirmed that it will return to smartphones with the launch of a new line next year. Nokia announced this at the Capital Markets Day event.

The upcoming Nokia Android smartphone will reportedly come with a 5.2-inch or 5.5-inch 2K QHD display, putting it in the high-end category. Meanwhile, a new entry-level Nokia phone called Pixel has been spotted running on the Android 7.0.1 Nougat and powered by a Qualcomm Snapdragon 200 SoC with 1 GB of RAM.

The Finnish electronics company is set to reveal the details of its new smartphone line at the Mobile World Congress in 2017. HMD Global recently acquired Nokia's commercial licenses for the next 10 years. It will make an appearance at the MWC 2017 in Barcelona from Feb. 27 to Mar. 2.

Nokia will not manufacture the new smartphones and will only oversee the development of the new headsets with the owners of the patents and brand. HMD Global will create the phones with Foxconn's research development and manufacturing. It will spend about 200 million EUR on marketing and promotion for its first three years.

HMD Global is looking to release two Nokia feature phones before 2017 ends. According to James Rutherfoord of Microsoft Asia, these new phones will be launched between January and June 2017.

Microsoft's acquisition of the Nokia mobile division is said to be quite a disappointment for both companies. The Lumia 638 was the last smartphone released by Nokia two years ago. Since then, the company has been producing feature phones exclusively. Its most recent release was the Nokia 216 in October.